R&D Preparatory Incentive Program for Companies in the Manufacturing Industry

The preparatory incentive program is a complementary tool operated by the Innovation Authority for the manufacturing industry sectors. This tool is intended to assist companies without prior R&D experience in leading innovation processes, or for companies that require focus and guidance with their R&D activities.

To create an innovation-focused change in companies from the manufacturing industry sectors, that will increase the competitiveness of the participating companies.

The preparatory incentive program has 4 secondary tracks:

1. Basic Support Track: the objective of this track is to assist in formulating new products or processes. In this track, a technology consultant will assist the applicant in implementing a process of mapping and examining technological capabilities in order to formulate innovative ideas.
2. Technological Feasibility Examination Track: this track involves a process of assessing technological feasibility under the guidance of a technology consultant who will assist the applicant in the initial process of reducing technological risks.
3. Developing Solutions for Flaws in the Production Process: in this track, the consultant will analyze a specific technological problem that characterizes a flaw in the production process and will assist in formulating recommended solutions.
4. Improved Production Process: the consultant will analyze the production processes in order to streamline them by assimilating innovative technologies improvements aimed at improving productivity.

An Israeli industrial company that meets one of the following conditions:

• The majority of its income stems from manufacture of products in the traditional technology sectors or in the mixed-traditional technology sectors. The sectors include: food, beverages, textiles, leather, wood, paper, oil products, rubber, plastics, metals, building materials, machine maintenance.
• The majority of its income stems from industrial manufacture of products in the mixed-high-tech technology sectors including: chemistry, arms and ammunition, electric equipment, manufacture of machines. Furthermore, the number of the company’s manufacturing personnel is at least 30% of its total employees, but not less than 3 workers; and the number of R&D employees no more than 10% of its total employees, but not more than 25 workers.

Support for 66% of the approved budget (maximum budget NIS 75,000) and support for 75% of the approved request’s budget (maximum budget NIS 100,000) for Area ‘A’ Development Regions. The support includes the consultant’s fee, market surveys, technology and patents, laboratory tests, purchase of materials and specific equipment, additional technology consultants’ fees and other miscellaneous expenditures related to the approved program.

Identification of Technological Gaps: Companies applying for the R&D preparatory incentive program will receive professional consultation to assist them in identifying technological gaps in their current capabilities, locating directions for possible development, identifying flaws in the production process, improving the production process and, when necessary, in preparing for implementation of a more comprehensive R&D program (together with the support of the Innovation Authority).